Nvidia Tests New Tracking Software Amid Chip Smuggling Rumours

Nvidia is reportedly testing new software designed to track the physical location of its AI chips. This development comes as rumours intensify regarding the smuggling of high-performance processors into China.

Reportedly, the company has built specific location verification technology. This tool allows the tech giant to identify exactly which country a chip operates in.

The software uses a clever method to verify location. It tracks computing performance and measures the delay in communication between servers. This data offers a clear sense of a chip’s geographic location.

Currently, this software will be optional for customers. Nvidia plans to make the tool available for its powerful Blackwell chips first.

Nvidia Addressing Smuggling Allegations

Multiple reports have surfaced in recent days regarding China’s AI capabilities. These reports allege that DeepSeek AI models were trained on smuggled Nvidia Blackwell chips.

However, Nvidia has responded firmly to these claims. The company states it hasn’t seen any evidence to support these smuggling theories. An Nvidia spokesperson told TechCrunch:

We haven’t seen any substantiation or received tips of ‘phantom data centers’ constructed to deceive us and our OEM partners, then deconstructed, smuggled, and reconstructed somewhere else.

While the spokesperson noted that such smuggling schemes seem “far-fetched”, the company continues to pursue any tips they receive.

New Regulations for H200 Chips

This news arrives just days after a significant regulatory shift. On Monday, the U.S. government gave Nvidia the green light to begin selling its H200 AI chips to approved customers in China.

It is important to note that this approval is limited. The announcement pertains only to the older H200 chips. It does not authorise the sale of the company’s newer Blackwell chips, which remain the focus of the current smuggling rumours.